The XRP Ledger, a blockchain network associated with the XRP cryptocurrency, has achieved a significant milestone with the number of active wallets on its network. According to blockchain analytics company Santiment, this development reflects a growing interest in XRP over the past few years.
Rising interest in XRP
XRP, a prominent cryptocurrency in the digital asset space, has been making headlines recently due to discussions surrounding a potential spot exchange-traded fund (ETF) and bullish predictions by analysts.
Santiment, in a post on January 27, reported that the XRP Ledger now boasts a remarkable 5.02 million individual wallets holding more than 0 XRP. This figure represents the highest number of holders in the past decade, indicating a surge in XRP adoption.
Santiment’s data reveals that the number of XRP holders has doubled since February 10, 2021, and tripled since May 29, 2019. This dramatic increase in XRP adoption demonstrates the cryptocurrency’s growing popularity among investors and enthusiasts.
Factors driving adoption
Several factors could potentially contribute to the further adoption of the XRP Ledger. One pivotal factor is resolving the ongoing legal battle between Ripple, the company behind XRP, and the U.S. Securities and Exchange Commission (SEC).
A recent YouTube video by the price prediction channel “Discover Crypto” highlighted the SEC v. Ripple case as a lingering cloud of uncertainty that has fueled skepticism among investors.
The channel host suggested that even if Ripple faced fines as part of a settlement, it would likely lead to a significant uptick in XRP’s price and adoption. The conclusion of this three-year legal saga could provide the clarity and confidence needed to attract more participants to the XRP ecosystem.
Spot ETF potential
Another potential catalyst for increased activity on the XRP Ledger is the introduction of a spot exchange-traded fund (ETF) for XRP. Following the SEC’s approval of a Bitcoin spot ETF in January, there has been speculation regarding similar investment products for other cryptocurrencies, including XRP.
However, the prospect of an XRP spot ETF remains uncertain, as certain conditions must be met. Bloomberg analyst James Seyffart has noted that key prerequisites include the resolution of the SEC v. Ripple lawsuit and the introduction of an XRP future ETF on a regulated trading platform. Nevertheless, if realized, an XRP spot ETF would signify mainstream adoption of the cryptocurrency and likely lead to an influx of investors into the XRP Ledger.
Current XRP performance
As of the time of writing, XRP is trading at $0.53, reflecting a slight 0.1% decline in the past 24 hours. Despite the recent interest and positive developments, XRP has experienced a downward trend in recent weeks, with declines of 3.6%, 7.0%, and 15.5% over the last seven, 14, and 30 days, respectively. It is important to note that cryptocurrency markets can be volatile, and prices can fluctuate rapidly.
